Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
' Q0 G" x5 A' O, ^' Nthese oil producer will go bankrupt or out of the business even if
7 K' ]+ v8 e4 E) |3 ~4 |crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
: |* F6 B8 e5 @2 Ymonths. There are three wars going on in Gaza, Iraq and Afghandistan.
, m! q& k, U0 g- lA year ago these things would have spiked the price of crude oil by at
, b6 X& O  D4 k# T1 Rleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
$ Q0 N6 q* L9 ?: l5 b' i) J) ]8 i8 p

1. New oil has been found in Canada, Montana, North & South Dakota and
- `; J4 `0 d% l8 D% bin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

5 G2 l, O& u2 T0 X
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

" q4 V% t. T6 Y8 N' [3 |
3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
7 a+ i7 A# V4 a# [& Z% Q

4. Production of bio-fuels is beginning to reach critical mass. Bio
; T2 {; d# X$ Q3 k( X% Ufuel is being produced from many plants and algae. The production
( [* L1 L- c; n6 S8 Bpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

  O+ `: B: `0 A) M) }6 m: }
5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
+ Z" H* a. ^5 o/ P$ E( _; Vcattle, turkey and chicken processing plant will soon sell their fat
: H! T6 ~- c. d) C8 Eto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
: I  Q: O- V! v  b1 E

2 o: i- Y+ q6 O5 W6 J6. There are 99 nuclear reactors in various stages of planning and
2 g/ Y" [" {: K& Wconstruction around the world at this time. Several hundred more are
( G: e0 m9 {  X& k6 Y2 yexpected to be built in the future. Much of the energy they produce
will replace oil.
9 ]6 d4 {- v6 C

7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
. f5 j. o) u. G% ~, [$ z; h/ u& Twith new more fuel efficient equipment. Airlines and railway companies
5 p7 R0 @2 Y, y$ vare experiencing 20% to 25% better fuel econony with the new
) d; Z$ ?$ \+ ?( H* p; e: k% Jequipment.
, d6 g2 Q7 z* X3 U0 F5 ]2 X

1 {7 f0 V3 L0 `  r- ]) BAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
8 S  n% ?  k% m8 Q+ H  S' v) }

8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
  B+ d7 R& b8 f/ c/ ^! havailable at very little cost or risk. The gas is displacing crude
2 Q/ A% L6 H" N, @oil.

0 N0 P6 B6 y2 E4 C
5 N+ }- K) A3 ?- ^" |6 y/ \; w9. Coal is being transformed into a clean burning liquid fuel. The CO2
2 |' u9 o/ J8 z- j. m/ Eproduced as a byproduct is sold to oil companies for injection into
oil wells.
" {  I& ]) i! h5 G4 D# j8 }

10. Solar, wind and ocean energy is displacing oil as an energy
$ w, B  r# s' Csource. Three new wind turbines are being erected every day in the US.
3 K% h0 Q7 E/ C6 r9 o  m

6 Z$ D; o. _/ [; d* VEach of the above by itself will not make a large difference in the
# {1 G# }3 T- ?" H% p. b6 E0 F( tprice of crude oil but the sum of all of them together is world
9 u+ F& o! G* n* z+ l6 ~2 ]: _changing. The important thing is that OPEC no longer has the ability
8 y; `0 D4 F. M8 yto control oil prices.


With the above scenario, I still believe that there are under
( v% D; w1 u; C3 n3 Fperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

" F5 @: H* p3 N9 O' J4 Y, m
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only